Swot Analysis Of Home Depot

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Home Depot was one of the largest home improvement retailers of America with over 2248 stores worldwide. It was founded by Bernie Marcus and Arthur Blank in 1978. Home Depot is headquartered in Atlanta, Georgia. For two decades after its inception the company experienced rapid growth. But in the early 2000s the company performance slowed down and Bob Nardelli was named the new CEO. Earlier the company followed a decentralized organizational structure and that worked well until 2000.
In early 1980s, the aim was to bring warehouse retailing concept to the home center industry. This was considered to be the first successful company in Do-it-Yourself (DIY) segment and was famous for providing high quality products with the low prices. The Home depot was a part of large, rapidly growing and competitive home improvement industry during 1980’s. With two wage earners in each household, families were willing to spend more money on home improvement projects. Therefore, the DIY segment grew rapidly and the industry attached many competitors to give tough competitions to each others. In early 1990, Lowe’s became the largest competitor of Home depot as the sales and growth were at the top for Lowe’s stores which took Lowe to large-format warehouse stores.

Basis of Recommendation:

The success of the first three stores in 1979 encouraged the company to expand its business rapidly and reach the 50th store opening by the fiscal year 1985. Due to rapid expansion, the sales grew from $40

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